Zefiro Announces US$40 Million Backlog of Awarded Government Projects Extending Through June 2029

Government awards extend through mid-2029, while separately contracted exploratory work adds another revenue stream.

Rhea-AI Summary

Zefiro Methane (ZEFIF) announced approximately US$40 million in awarded government well-plugging projects, with work extending through June 2029.

The company expects to perform approximately US$4.9 million during its fiscal 2027 second quarter, ending December 31, 2026. The remaining approximately US$34.6 million is expected to be performed primarily in calendar 2027 and 2028. The backlog excludes corporate-client work, which typically has short lead times, and none of it is reflected in reported results.

Awards include a US$19.6 million Ohio contract and a US$11.5 million Great Lakes-region contract. Three previously unannounced Ohio projects add approximately US$5.0 million across 48 wells. Zefiro also received an Exploratory contract from the Ohio Department of Natural Resources, adding separately contracted well-assessment and preparation work as another revenue stream.

8 points · 1 major

PositiveiHow this balance works

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0 major · 0 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointOhio construction-management contract covers approximately 200 wells for US$19.6 million over three years through May 2029. 43% of market cap
• Moderate pointGreat Lakes-region state-funded contract provides US$11.5 million of work scheduled from November 2026 through June 2029. 25% of market cap
• Moderate pointThree additional Ohio projects represent approximately US$5.0 million across 48 wells. 11% of market cap
• Minor pointFederally funded Ohio awards provide US$2.4 million to plug 12 orphan wells in Lorain and Gallia Counties.
• Minor pointThree federally funded Ohio and Pennsylvania projects cover 12 orphaned wells, valued at approximately US$1.9 million.

3 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Current-quarter backlog work is expected to total approximately US$4.9 million, ending December 31, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Remaining backlog of approximately US$34.6 million is expected to be performed primarily in calendar 2027 and 2028.
• Minor pointODNR Exploratory contract adds a separately contracted revenue stream for well assessment and preparation.

Negative

• None.

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Approximately US$4.9 million of the government backlog is expected to be performed during the current quarter

Zefiro was awarded an Exploratory contract by the Ohio Department of Natural Resources, adding a new revenue stream to its growing portfolio of services.

Bradford, Pennsylvania--(Newsfile Corp. - October 19, 2026) - Zefiro Methane Corp. (CBOE CA: ZEFI) (FSE: Y6B) (OTCQB: ZEFIF) (the "Company", "Zefiro", or "ZEFI"), a North American environmental services company specializing in methane abatement and the plugging of orphaned and end-of-life oil and gas wells, today announced that its backlog of awarded government well-plugging projects totals approximately US$40 million, with work extending through June 2029.

Zefiro expects to perform approximately US$4.9 million of work toward the backlog during the current quarter — the second quarter of fiscal 2027, ending December 31, 2026. The remaining approximately US$34.6 million is expected to be performed primarily over calendar years 2027 and 2028, with the last of the contracts in the backlog scheduled to conclude in June 2029. Management expects the backlog to provide a strong, continued pipeline of revenue through mid-2029.

The backlog reflects government-funded projects only and does not include work for Zefiro's corporate clients, such as oil and gas operators. Corporate projects typically carry short lead times, with work scheduled and performed soon after award. As a result, the backlog represents only a portion of the work the Company expects to perform in any given period.

Major components of the backlog include the following previously announced awards:

• A three-year, US$19.6 million Construction Manager at Risk ("CMAR") contract from the Ohio Department of Natural Resources ("ODNR") to manage the plugging and abandonment of approximately 200 high-priority marginal wells across Ohio, running through May 2029

• A US$11.5 million state-funded well-plugging contract from a state environmental protection department in the Great Lakes region, with work scheduled from November 2026 through June 2029

• US$2.4 million in federally funded ODNR projects to plug 12 orphan wells in Lorain and Gallia Counties, Ohio

• Three federally funded well-plugging projects in Ohio and Pennsylvania valued at approximately US$1.9 million, covering 12 orphaned wells

The backlog also includes three additional Ohio well-plugging projects that have not been previously announced, together representing approximately US$5.0 million of work across 48 wells.

Exploratory Contract in Southeastern Ohio

Zefiro has also been awarded an Exploratory contract by ODNR for work in southeastern Ohio. Exploratory projects are part of ODNR's Orphan Well Program and are designed to better evaluate the equipment, materials, and conditions of orphan wells before they are plugged.

The work consists of assessment, site preparation, and initial excavation to expose each well — including removing surface equipment to identify the casing, tubing, and rods present, and running a depth meter to locate the first obstruction in the wellbore — so that the well is ready to be plugged once a separate plugging contract is awarded.

Because exploratory work is contracted separately from plugging, the award represents an additional revenue stream for Zefiro. It also adds to the Company's growing portfolio of services, which spans well plugging and abandonment, methane measurement and monitoring, carbon sequestration, and carbon credit origination — and now includes exploratory work.

Management Commentary

Zefiro Chief Executive Officer Catherine Flax commented: "When we reported our fiscal 2026 results, we said fiscal 2027 would be about converting the largest contracted pipeline in our history into revenue. This backlog, none of which is yet reflected in our reported results, gives Zefiro a multi-year base of government-funded revenue through mid-2029 that complements our growing private-sector business.

"The Exploratory contract is a welcome addition in its own right. It brings Zefiro into an earlier stage of the remediation process using the same crews we deploy every day, and it gives us another way to support state agencies as they work through their inventories of orphan wells," concluded Flax.

Zefiro Senior Vice President of Corporate Development Luke Plants added: "A backlog of this size and duration changes how we can run the business. Knowing where our rigs and crews will be working through mid-2029 allows us to sequence projects efficiently, plan mobilizations well ahead of time, and keep our people consistently in the field, which benefits our employees, our agency partners, and our shareholders alike."

About Zefiro Methane Corp.

Zefiro Methane Corp. (CBOE CA: ZEFI) (FSE: Y6B) (OTCQB: ZEFIF) is a North American environmental services company specializing in methane abatement and the plugging of orphaned and end-of-life oil and gas wells. Through operating subsidiary Plants & Goodwin, Inc., a third-generation well services company with a 50-plus-year operating history, Zefiro is vertically integrated across the well lifecycle — measurement and monitoring, plugging and abandonment, site restoration, and carbon credit origination — serving government and private-sector customers across 15 U.S. states. For more information, visit zefiroglobal.com.

Investor Relations Contact

Lucas A. Zimmerman
Managing Director
MZ Group - MZ North America
(949) 259-4987
ZEFIF@mzgroup.us
www.mzgroup.us

Notice Regarding References to Zefiro Entities

In this press release, the standalone name/term "Zefiro" collectively refers to both (i) Zefiro Methane Corp. (incorporated in the province of British Columbia, Canada) and (ii) Subsidiaries of Zefiro Methane Corp. unless explicitly stated or otherwise implied by the context. Likewise, first-person linguistic mechanisms such as "We", "Our", and "Us" also collectively refer to Zefiro Methane Corp. and its subsidiaries unless explicitly stated or otherwise implied by the context.

For instances in which a precise entity must be identified, the exact legal name of the entity in question will generally be stated (e.g., "Zefiro Methane Corp." would refer to this entity only and not any of its subsidiaries).

This convention is used only for convenience to facilitate simple and plain-language disclosures to investors, and a comprehensive overview of Zefiro Methane Corp.'s subsidiaries that are collectively referred to with the "Zefiro" name/term can be found in the Company's most recent MD&A, which can be accessed on SEDAR+ at www.sedarplus.ca/.

Forward-Looking Statements

This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian and U.S. securities laws (collectively, "forward-looking statements"). These statements are based on the current expectations, estimates, projections, beliefs, and assumptions of management of the Company as of the date of this news release. Forward-looking statements may be identified by words such as "anticipates," "expects," "intends," "plans," "believes," "estimates," "may," "will," "should," "could," "potential," and similar expressions, although not all forward-looking statements contain such words. These statements include, without limitation, expectations concerning the Company's operational outlook, existing and anticipated private and/or government contracts, project backlog, expected revenues and financial performance, timing and scope of project execution, private and/or government funding and work authorizations, business opportunities, and future operations. Such statements are based on assumptions considered reasonable by management, including the continued availability of private and/or government funding, anticipated project schedules and scopes of work, timely receipt of necessary approvals and authorizations, availability of personnel and operational resources, and the absence of material adverse changes in economic, regulatory, or market conditions.

Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, many beyond the Company's control, that could cause actual results to differ materially from those expressed or implied. These factors include, without limitation: (i) adverse economic and market conditions; (ii) changes in private or government funding, policies, regulations, or environmental programs; (iii) delays, modifications, reductions, or cancellations of contracts or projects, including changes in the timing, scope, funding, work authorizations, or payments associated with the Company's backlog; (iv) uncertainty regarding the volume of work authorized or performed under the Exploratory contract; (v) operational, technical, environmental, permitting, labor, and equipment-related risks affecting project execution or costs; (vi) financing, liquidity, and working capital requirements; (vii) fluctuations in commodity prices, carbon credit markets, and demand for environmental services; and (viii) reliance on government agencies, contractors, suppliers, and other third parties. Additional risks are described in the Company's management's discussion and analysis, annual information form, and other continuous disclosure filings available on SEDAR+ at www.sedarplus.ca. These risks are not exhaustive. Although management considers its assumptions reasonable, there can be no assurance that anticipated results or events will occur as expected or at all. Readers should not place undue reliance on these statements, which speak only as of the date of this news release. The Company undertakes no obligation to publicly update or revise them, except as required by applicable law.

Also, this news release may include market and industry data obtained from various publicly available sources and other sources believed by the Company to be true. Although the Company believes it to be reliable, the Company has not independently verified any of the data from third-party sources referred to in this news release or analyzed or verified the underlying reports relied upon or referred to by such sources, or ascertained the underlying assumptions relied upon by such sources. The Company does not make any representation as to the accuracy of such information.

This news release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Zefiro Methane Corp., nor shall it form the basis of or be relied upon in connection with any investment decision.

Statement Regarding Third-Party Investor Relations Firms

Disclosures relating to investor relations firms retained by Zefiro Methane Corp. can be found under the Company's profile on SEDAR+ at www.sedarplus.ca/.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/319614

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much government project backlog does Zefiro Methane have?

Zefiro has approximately US$40 million in awarded government well-plugging projects, with work extending through June 2029. This excludes corporate-client projects, which typically are scheduled and performed soon after award.

What work does Zefiro's Ohio Exploratory contract cover?

The ODNR Exploratory contract covers assessment, site preparation and initial excavation of orphan wells in southeastern Ohio. Work includes removing surface equipment, identifying well components and locating the first obstruction with a depth meter. It prepares wells for plugging once a separate plugging contract is awarded.